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Walmart could see a significant decline in consumer spending if the government suspends Supplemental Nutrition Assistance Program (SNAP) benefits as a result of the ongoing shutdown. According to a June report from the market research data firm Numerator, Walmart accounts for roughly a quarter (24 percent) of SNAP shoppers’ total spending. Given the estimated $100 billion spent by the government on the program annually—roughly $8.3 billion monthly—this would imply a loss of about $2 billion for Walmart if the benefits are withheld for the entire month of November. Newsweek has contacted Walmart through its website for comment. Why It Matters Now in its 27th day, the government shutdown that began on October 1 over expiring Affordable Care Act subsidies is now the second longest in U.S. history. Medicare, Medicaid and Social Security benefits are continuing despite the lapse in funding, but the suspension of SNAP payments is expected to significantly impact the more than 40 million Americans who rely on the program. The Walmart logo outside a store on October 10, 2025, in San Diego, California. (Photo by Kevin Carter/Getty Images) What To Know In a notice posted to its website, the U.S. Department of Agriculture (USDA) said that funding for SNAP will run out on November 1 and that no benefits will be issued beginning on that date. “Bottom line, the well has run dry,” the department said, while blaming Senate Democrats for the failing to reopen the government. Ismael Martinez, an economist with the Economic Policy Institute (EPI), told Newsweek that beyond the impacts on lower-income families, a brief pause in payments will lead to significant “economic pain.” “SNAP benefits make up about 8 percent of all retail spending on groceries–even a short interruption of this spending could lead to layoffs or other painful adjustments in this sector,” he said. “Walmart alone accounts for almost one quarter of SNAP spending (about $25 billion), and SNAP spending accounts for more than 8 percent of their grocery sales. “It is difficult to understate just how important SNAP benefits are to economically vulnerable families, children and the broader economy. We should be doing everything we can to ensure that families have this vital source of support as the threat of food and economic insecurity continues to rise.” Numerator’s report, based on behavioral data from more than 31,600 verified recipients and survey responses from more than 1,250 participants, found that SNAP spending has increasingly been moving toward big-box retailers. Walmart, whose revenue rose 5 percent to $681 billion in its most recent fiscal year, captures 24 percent of SNAP shoppers spending, followed by Kroger (8 percent), Costco (6 percent), Amazon (5 percent) and Walmart-owned Sam’s Club (4 percent). Representatives of the grocery sector have warned about the potential fallout from the benefits being halted. On Thursday, the National Grocers Association noted that SNAP is “a powerful economic engine for communities big and small,” and called on “leaders in Congress from both sides of the aisle to find a funding solution that reopens the government as quickly as possible.” What People Are Saying The USDA, in a notice on its website: “Bottom line, the well has run dry. At this time, there will be no benefits issued November 01. We are approaching an inflection point for Senate Democrats. They can continue to hold out for healthcare for illegal aliens and gender mutilation procedures or reopen the government so mothers, babies, and the most vulnerable among us can receive critical nutrition assistance.” Jennifer Hatcher, chief public policy officer at the Food Marketing Institute, in a statement on October 21: “Now is the time for Congress to end the government shutdown to ensure that our most vulnerable Americans continue to have access to the food they need to feed their families through SNAP.” Economist Ismael Martinez told Newsweek: “More than 40 million people rely on SNAP benefits to help them access essential and healthy foods. SNAP is more important than ever as food insecurity is higher today than it was before the pandemic. The share of families with children [17.9 percent] who experience food insecurity has continued to rise consistently since 2021. SNAP benefits help a lot of these families avoid poverty. Just last year, SNAP kept more than 3.5 million people out of poverty, including more than 1.4 million children. Even a brief interruption of benefits will push all these economically vulnerable families and children into greater hardship during a time of rising food and economic insecurity.” What Happens Next The administration has ruled out using the roughly $5 billion in contingency funds to keep SNAP benefits flowing into November.
